Labor income gap by gender in the Dominican Republic: An analysis of its evolution in the period 2000–2021

Abstract

The labor income gap between men and women in Latin America remains a barrier to achieving gender equality and sustainable development. In the Dominican Republic, this gap is particularly prevalent in the informal sector, among self employed workers, and in regions with higher female labor participation. Despite women often having a better job profile than men, the gap persists, pointing to the presence of gender biases. This paper aims to analyze the gender-based labor income gap in the Dominican Republic from 2000 to 2021, using data from the National Labor Force Surveys conducted by the National Statistics Office (ONE) and harmonized by the Inter- American Development Bank (IDB). Two models are employed for this analysis: the Blinder-Oaxaca decomposition and the Ñopo decomposition. The primary contribution of this paper lies in its long-term analysis of the gap, which provides insight into how it has evolved over time. The findings reveal a significant and statistically substantial labor income gap that cannot be explained by factors such as work experience or economic sector, suggesting that the causes are likely normative or discriminatory. The gap is most pronounced in the informal sector, among self-employed workers, and in regions with higher female labor participation. Although the analysis spans two decades, no clear trend of increase or decrease in the gap was observed. However, the unexplained portion of the gap has widened considerably, indicating a need for further investigation to understand and address this disparity.